Tenant Insurance

[NorthernAlex]

Hello World.

I wonder what your take is in regard of Tenant Insurance. Do you ask your tenant upon move in date that they have to show you prove? Do you check once a year if they have it? Do you check at all?

The tenants are told that they are supposed to contact their insurance to contract a tenant insurance and they are signing this, but I never double check....

Thanks for your feed back!

 

[PropertySolution]

Insurance is not mandatory with our properties unless they have pets, water bed or large fish tank. Then they are required to supply me with a copy of the policy and updated copies as they expire. Otherwise I only suggest they have their own insurance and provide them with 3 companies that offer good rates.

Offering names and possible insurance rates can prompt Tenants to get insurance. Most do not realize how inexpensive it really is.

 

[invst4profit]

I insist on tenants having insurance and require proof.

 

[Nir]

QUOTE (invst4profit @ May 27 2010, 07:12 PM) I insist on tenants having insurance and require proof.

What prevents your tenants from canceling their insurance policy shortly after sending you the proof?
or do you not care since you do this for your insurance company? Thanks.

 

[Berubeland]

Many insurance companies for building require that tenants have insurance to cover their contents. Check your policy. As a matter of course I have not heard of insurance companies denying claims because of this. However, I`m pretty sure you wouldn`t want to be the insurance companies "test" case.

It is a tricky situation because... tenants usually sign that the landlord is not responsible for suite contents. However if you have a fire or flood the Landlord & Tenant Board will require that you pay these costs, including the cost of accommodation for the tenant. If the tenant had insurance their insurance company would carry that cost and the landlord would not be responsible for those costs.

Most tenants do not realize that they can also be sued by the building or their insurance company if their negligence causes damages. Other tenants can also sue them. We as landlords really don`t do enough to inform them.

On the other hand it is very difficult to force tenants to do anything.

 

[PropertySolution]

QUOTE (investmart @ May 27 2010, 08:18 PM) What prevents your tenants from canceling their insurance policy shortly after sending you the proof?
or do you not care since you do this for your insurance company? Thanks.


Its been my experience that because the cost of renter`s insurance is so low they pay for 1 year at a time. Thus canceling the insurance is of no value because they do not refund the Tenant.

 

[NorthernAlex]

Ladies and gentlemen,

thank you very much for your feed back.

I will continue to ask my tenant to sign my waiver. I will not insist on the insurance, but highly recommend it.

I will talk to my insurance broker and ask him to shop around. Maybe I can offer a bulked rate to my tenants as a service.

 

[invst4profit]

QUOTE (investmart @ May 27 2010, 10:18 PM) What prevents your tenants from canceling their insurance policy shortly after sending you the proof?
or do you not care since you do this for your insurance company? Thanks.


I require them to forward there annual proof of renewal.

There was a Divisional Court ruling in 2005.

Divisional Court in Stanbar Properties Limited v. Brook (2005) Doc. Hamilton
04-212DV (Ont. Div. Ct.)
Ruling held that in the case of a lease requiring a tenant to have insurance refusal to provide proof of insurance is a breach of a tenancy agreement and interfere with a lawful right, privilege or interest of the landlord.

In the case of a tenant refusing to show proof of insurance a LL can issue an eviction order and take the tenant to the board referencing the Divisional Court ruling. The LTB is bound to court rulings.

Therefor it would follow that a tenant can be evicted, under certain circumstances, for not providing insurance coverage.